24
Also in this Issue • New Jersey Bill Provides for Facilities to Make Health Care Decisions for Patients without Decision Making Capacity • Update on Appeals Court decisions regarding the Federal Health Reform Law • Medical Protective to Acquire Princeton Insurance • Emerging Liability Insurance Risks Michael C. Pitter, MD Pioneering the Adoption of Robotic-Assisted Surgery for Minimally Invasive Treatment of Benign Gynecologic Conditions SEPTEMBER 2011

NJ Physician Magazine Septemember 2011

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Page 1: NJ Physician Magazine Septemember 2011

Also in this Issue• New Jersey Bill Provides for Facilities to Make Health Care Decisions for

Patients without Decision Making Capacity

• Update on Appeals Court decisions regarding the Federal Health Reform Law

• Medical Protective to Acquire Princeton Insurance

• Emerging Liability Insurance Risks

Michael C. Pitter, MDPioneering the Adoption of Robotic-Assisted Surgery for Minimally Invasive Treatment of Benign Gynecologic Conditions

s e p t e m b e r 2 0 11

Page 2: NJ Physician Magazine Septemember 2011

www.HNManagement.com973-660-9334/ext 125Located in Florham Park, NJ

HEALTH NETWORKM A N A G E M E N T

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Page 3: NJ Physician Magazine Septemember 2011

Publisher’s Letter

Dear Readers,

Welcome to the September edition of New Jersey Physician, the provider of

critical information for the state’s medical community.

When a person loses the decision-making capacity, a new bill will provide for

facilities to make health care decisions for these patients. The health care facility

will be authorized to designate a surrogate to make these decisions. If passed in

its present form, the new law would establish a three year transition authorization

panel demonstration program, to be conducted at six program sites for the

purpose of evaluating an approach to making decisions relating to the transition

of eligible patients from inpatient care to post-acute care.

In response to the federal health reform law, now known as the Affordable Care

Act, and separate state reform initiatives, some members of at least 45 state

legislatures have proposed legislation to limit, alter or oppose selected state

or federal actions. Recent conflicting state decisions and resulting conflicting

decisions by federal appeals courts make it appear likely that the ACA is heading

to the Federal Supreme Court.

Medical Liability Mutual Insurance Company, parent of Princeton Insurance, and

Medical Protective Company, a Berkshire Hathaway subsidiary have announced

they have entered into a definitive agreement for the sale of Princeton Insurance

Company, one of the Northeast’s premiere professional liability insurers.

We are pleased and proud to introduce a new column in this month’s issue.

Leon Smith, MD, one of the most well known and respected infectious disease

specialists in New Jersey will be submitting most interesting case histories and

asking physicians to submit a diagnosis. Correct responses will win a New Jersey

Physician T-Shirt as well as receiving mention in the following month’s column.

Take a look at this new feature and give it a try by responding to me by email.

Our cover story this month profiles Michael C. Pitter, MD. Dr. Pitter is well-known

and internationally respected gynecologic surgeon who has pioneered the

use of the da Vinci® robotic system for minimally invasive treatment of benign

gynecologic conditions. With his significant experience in the use of the system,

he has demonstrated that robotic assistance facilitates the laparoscopic approach

and can provide an improved rate of minimally invasive surgery adoption

by gynecologists with outcomes that are equivalent to conventional open

techniques.

With warm regards,

Michael GoldbergCo-Publisher

New Jersey Physician Magazine

Published by Montdor Medical Media, LLC

Co-Publisher and Managing EditorsIris and Michael Goldberg

Contributing Writers Iris GoldbergLeon Smith, MDLani M. Dornfeld, EsqKevin M. Lastorino, EsqBrian Kern, Esq

New Jersey Physician is published monthly by montdor medical media, LLC.,PO Box 257Livingston NJ 07039Tel: 973.994.0068Fax: 973.994.2063

For Information on Advertising in New Jersey

Physician, please contact Iris Goldberg at

973.994.0068 or at [email protected]

Send Press Releases and all other information

related to this publication to

[email protected]

Although every precaution is taken to ensure

accuracy of published materials, New Jersey

Physician cannot be held responsible for opinions

expressed or facts supplied by its authors. All

rights reserved, Reproduction in whole or in part

without written permission is prohibited.

No part of this publication may be reproduced or

transmitted in any form or by any means without

the written permission from Montdor Medical

Media. Copyright 2010.

Subscription rates:

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Advertising rates on request

New Jersey Physician magazine is an

independent publication for the medical

community of our state and is not a publication

of NJ Physicians Association

Page 4: NJ Physician Magazine Septemember 2011

2 New Jersey Physician

CONTENTS

10

Health Law Update

12

Statehouse

14

Medical Malpractice

Emerging liability insurance risks

16

Industry News

Medical Protective to acquire Princeton Insurance

17

Diagnosis

Choose the correct diagnosis to the given symptoms and you could win

18

Food for Thought

Arturo’s - Osteria & Pizzeria Maplewood, New Jersey

20

Hospital Rounds

Contents

Michael C. Pitter, MDPioneering the Adoption of Robotic-Assisted Surgery for

Minimally Invasive Treatment of Benign Gynecologic Conditions

COVER STORY

4

Page 5: NJ Physician Magazine Septemember 2011

Call for NomiNatioNs

New Jersey physician magazine invites all medical practices to submit nominations for cover stories.

practices should include a brief description of what makes the practice special.

please contact the publisher Iris Goldberg at [email protected]

September 2011 3

Page 6: NJ Physician Magazine Septemember 2011

4 New Jersey Physician

Although a minimally invasive

laparoscopic approach is routinely

utilized for many commonly performed

surgeries within a cross-section of

specialties, for some predominant

gynecologic procedures, a pure

laparoscopic approach is difficult to master

for the average gynecologist. The technique

of laparoscopic suturing required for these

procedures has proven to be extremely

challenging for a great many gynecologists

and has been mastered by only a relatively

small number of minimally invasive

gynecologic surgeons.

With robotic assistance, however, the

difficulties of a pure laparoscopic approach

can be overcome and these procedures

can be performed in a minimally invasive

manner. Michael C. Pitter, MD is the

chief of gynecologic robotic and minimally

invasive surgery and a clinical assistant

professor of obstetrics and gynecology

at Newark Beth Israel Medical Center

and is affiliated with Hackensack University Medical Center as well.

Dr. Pitter specializes in robot-assisted

minimally invasive surgery for the

treatment of benign gynecologic

conditions. He discusses, from his

significant experience with the da Vinci®

Surgical System, how robotic assistance

facilitates the laparoscopic approach and

can provide an improved rate of minimally

invasive surgery adoption by gynecologists

with outcomes that are equivalent to

conventional techniques.

Cover Story

Michael C. Pitter, MDPioneering the Adoption of Robotic-Assisted Surgery for Minimally Invasive Treatment of Benign Gynecologic Conditions By Iris Goldberg

p Dr. pitter is at the controls of the da Vinci® robot. robotic assistance facilitates the laparoscopic approach and provides an improved rate of minimally invasive surgery adoption.

Page 7: NJ Physician Magazine Septemember 2011

September 2011 5

“The addition of the da Vinci® system to laparoscopy really makes

these procedures almost like open surgery through laparoscopic

access. In any suture-intensive operation, where you are trying to

replicate the motions of the human hand, the da Vinci® system

is definitely an enabling tool for the average surgeon to be able to

do those procedures without having to have an extensive learning

curve,” Dr. Pitter shares.

Myomectomy is an alternative to hysterectomy for the removal of

uterine fibroid tumors whether or not future fertility is an issue. Dr.

Pitter shares that with increased awareness on the part of patients,

myomectomy is often the more desirable option for women of all

ages, preferring to opt for the minimally invasive approach.

Uterine fibroids are benign tumors that originate in the uterus.

Although they are composed of the same smooth muscle fibers as

the myometrium (uterine wall), they are many times denser. Usually

round or semi-round in shape, uterine fibroids are often described

based on their location within the uterus. Subserosal fibroids are

located beneath the serosa (lining membrane on the outside of

the organ). These often appear localized on the outside surface of

the uterus or may be attached to the outside surface by a pedicle.

Submucosal fibroids are located inside the uterine cavity beneath

the lining of the uterus. Intramural fibroids are located within the

muscular wall of the uterus.

Fibroid tumors are quite common with up to 70 percent of women

developing fibroids by age 55. Dr. Pitter explains that only a small

percentage of women with uterine fibroids are symptomatic. Of those,

perhaps 40 to 50 percent will experience bleeding and pain.

The treatment options vary depending upon the size of the tumor, the

symptoms and the age of the patient. When fibroids are very small

and are not causing significant symptoms, the patient can merely

be watched over time. When pain and/or bleeding result or when a

woman’s fertility is impacted by uterine fibroids, it becomes necessary

to remove them.

“There is a lot of work that has been done and published looking at

pregnancy rates with and without fibroids. We know that when these

fibroids are removed, pregnancy rates go up,” Dr. Pitter reports. In fact,

Dr. Pitter sees many women who have been referred by reproductive

endocrinologists. Even if IVF is still on the horizon, removal of fibroids

will enhance the chances that conception will occur. “In women for

whom fertility is not an issue, myomectomy can result in resolution

of symptoms (decreased pain and bleeding) in up to 81 percent of

patients,” Dr. Pitter continues.

The technique chosen depends on location, number and size of the

fibroids and the expertise of the surgeon. For fibroids that are less

than 5 cm. and are located in the sub-mucosa or lining of the uterus,

Dr. Pitter would most likely employ a hysteroscopic or trans-vaginal

approach. For fibroids that are greater than 5 cm. the options are:

a multi-stage (repeating the procedure on more than one occasion)

hysteroscopic approach, a conventional open procedure or a

laparoscopic approach.

“The problem with traditional laparoscopy is that when you have a

fibroid that is five or more centimeters in diameter and it is deeply

embedded within the myometrium, it is very difficult to gain access.

Those tumors require a multi-layer closure in order to ensure adequate

healing, especially in women for whom fertility is an issue,” explains

Dr. Pitter.

To successfully perform a multi-layer closure to repair deep

hysterotomy defects with the rigid instruments used in traditional

laparoscopy and also to master the skill sets required for endoscopic

suturing and tying of knots to obtain a tight, secure hemostatic

closure is possible with pure laparoscopy, according to Dr. Pitter

but extremely challenging for the average surgeon. When the robot

is added, however, he knows without question that the robotic

platform gives surgeons greater capability of successfully repairing

deep hysterotomy defects and provides them with a more achievable

minimally invasive option to offer patients.p the robotic arms are in place to begin the myomectomy. below, Dr. pitter views mrI mapping which shows the number and location of fibroids to be removed.

p One of the fibroids is being removed.

Page 8: NJ Physician Magazine Septemember 2011

6 New Jersey Physician

After successfully completing a difficult purely laparoscopic

myomectomy about six years back and really struggling to replicate

the results that would be achieved in an open procedure, Dr. Pitter

happened to see a da Vinci® robotic prostatectomy that was being

performed in the OR next to his. The urologic surgeon was still in the

process of being trained to operate the robot. “That’s when the light

bulb really went off in my mind,” Dr. Pitter remembers. He thought to

himself, “This thing has wrists. It can suture. What would happen if I

used this for my myomectomy procedures?”

Dr. Pitter approached the representative from Intuitive, which is the

company that developed the da Vinci® Surgical System and asked

how he might receive training. Things moved quickly after that. He

received his initial training in a porcine lab, where animal models are

used. “I knew immediately this was the right thing for me,” Dr. Pitter

relates. He soon became convinced that other gynecologic surgeons

could benefit from this technology without needing an extensive

amount of time to adapt.

In fact, four years ago Dr. Pitter wrote a paper that questioned how

steep the learning curve would be for the average surgeon to gain

proficiency with the robot. He reported that after only about 20

procedures there was a significant drop in blood loss and operating

time. These results were duplicated in subsequent studies by other

researchers.

When a woman has fibroids that are exceptionally large or when there

are multiple fibroids to be removed, Dr. Pitter reports that traditionally,

she would have an open abdominal procedure instead of a minimally

invasive laparotomy because that would be the safest and most

direct approach for successful removal of the tumor or tumors in the

shortest amount of time.

Again, as Dr. Pitter emphasized, the robot-assisted myomectomy

combines the best of open and laparoscopic surgery. With this

technology surgeons can remove uterine fibroids using a minimally

invasive approach through small incisions with unmatched precision

and control. Comprehensive and thorough reconstruction of the

uterine wall, regardless of the size or location of fibroids is achieved.

This is important in preventing possible uterine rupture for those

women who will become pregnant in the future.

“We have noticed that as surgeons gain more experience with the

robot, we are now able to remove multiple fibroids with fibroid volumes

comparable to open abdominal myomectomies,” Dr. Pitter informs.

The incorporation of magnetic resonance imaging (MRI) into robotics

has helped to compensate for the absence of tactile feedback. 3-D MR

images, displayed on the surgeon’s console are used for mapping,

detecting, locating and enucleating myomas (fibroids). The capability

to see all three views – axial, coronal and sagittal – during surgery

enables Dr. Pitter to overcome tactile limitations and remove multiple

myomas.

MR imaging can also be used as a preoperative tool to determine prior

to surgery, the size, number and location of myomas. MRI mapping of

fibroids is a new technology which Dr. Pitter has recently implemented

into his procedures and is teaching to other surgeons. For fibroids that

are situated deep into the myometrium, especially, this technology

prevents those fibroids from being missed by the surgeon. “By having

the three dimensional coordinates of exactly where all the fibroids are,

I am able provide complete treatment and remove all of the fibroids

without actually feeling them,” Dr. Pitter explains.

Another important advantage of MRI mapping that Dr. Pitter mentions

is the ability to find all the fibroids quickly which cuts down on

operating time and blood loss. Knowing exactly where the fibroids

are also eliminates unnecessary probing of healthy tissue.

Having the MRI prior to surgery helps to determine whether a

patient is a good candidate for myomectomy or perhaps should be

disqualified due to the number and location of her myomas. In an

article written by him that appeared in the June, 2011 issue of Ob.Gyn.

News, Dr. Pitter says, “In my experience, MR imaging can be useful

preoperatively in conjunction with pelvic exams to effectively screen

for patients who are likely to have successful outcomes with robotic

myomectomy.”

p Here the robot enables a secure hemostatic closure to successfully repair hystertomy defects.

p the incorporation of mrI imaging helps surgeons compensate for the absence of tactile feedback.

Page 9: NJ Physician Magazine Septemember 2011

September 2011 7

The three basic components of the da Vinci® system are a patient-

side cart, a vision system and a surgeon’s console. The patient-side

cart has four robotic arms that are attached or “docked” to trocars that

are placed in the abdomen in strategic locations. One arm holds the

endoscope (either an 8.5-mm or 12-mm diameter, with a 0-degree or

30-degree configuration) and the other three arms hold miniaturized

8-mm (or 5-mm) instruments. The vision system delivers a high-

definition 3D image to the viewer in the surgeon’s console and 2-D

images to other monitors in the operating room.

From the console, the surgeon uses hand controllers and foot pedals

to move the instrument and camera robotic arms of the patient-

side cart via a process of computer algorithms that reduce tremor

and employ motion scaling to deliver precise movements within the

surgical field. The robotic instruments have seven degrees of freedom

that replicate or surpass the motions of the human hand, allowing the

surgeon to essentially perform open surgery through laparoscopic

access.

Besides myomectomy, there are other commonly performed

gynecologic procedures to treat benign conditions that are well-

suited to robotic assistance. Sacrocolpopexy is surgery to correct

any pelvic floor prolapse where the entire vagina or the uterus, cervix

and vagina are protruding out of the body. This reconstruction of the

pelvic floor is accomplished with and without the use of mesh or any

other tethering tools. More than 120,000 women in the United States

undergo sacrocolpopexy each year.

Prolapse (falling) of the pelvic floor organs (vagina, uterus, bladder or

rectum) occurs when the connective tissues or muscles in the body

cavity are weak and cannot hold the pelvis in its natural position. The

weakening of connective tissues accelerates with age, after childbirth,

with weight gain or strenuous physical activity. Women with pelvic

floor prolapse experience problems with urinary incontinence,

vaginal dysfunction and/or difficulty with bowel movement.

Traditional open sacrocolpopexy, which involves a 15-30 cm horizontal

incision in the lower abdomen and a lengthy and bloody procedure to

manually access the inter-abdominal organs, including the uterus was

the gold standard. Dr. Pitter shares that much like for myomectomy,

performing a straight laparoscopic sacrocolpopexy, which is another

suture intensive procedure, without robotic assistance is tedious and

presents a considerable challenge.

With the introduction of the da Vinci® robot to sacrocolpopexy, a

laparoscopic, minimally invasive approach with small incisions can

now be used to make the repair. The robotic instruments are employed

in the same manner as in myomectomy, allowing the benefits of open

surgery through laparoscopic access, thereby reducing the risk of

complications associated with the open procedure.

In fact, in a chapter in the September, 2011 issue of Clinical

Obstetrics & Gynecology, which Dr. Pitter co-authored, it was

reported that when comparing the learning curve for straight

laparoscopic sacrocolpopexy with that of robot-assisted laparoscopic

sacrocolpopexy, the difference was staggering. The robotic procedure

has been consistently significantly easier for surgeons to adopt.

In addition to the difficulties faced by surgeons attempting to perform

a purely laparoscopic myomectomy or sacrocolpopexy, Dr. Pitter

discusses the troubled history of laparoscopic hysterectomy. He

relates that since the first description of laparoscopic hysterectomy

p the da Vinci® robot stands next to the patient during the procedure. Dr. pitter is operating the controls from the console.

p Dr. pitter is beginning a robot assisted hysterectomy by placing the laparoscope into the abdomen to ensure proper placement of the trocars.

Page 10: NJ Physician Magazine Septemember 2011

8 New Jersey Physician

in the late 1980s, although there were slight increases in the 20 years

following, only about 12-14 percent of all hysterectomies performed

were done laparoscopically due to the challenges of a straight

laparoscopic approach.

Dr. Pitter cites the most recent mission statement by the American

Association of Gynecologic Laparoscopists (AAGL) at their last

meeting in November. Basically, the Association stated that if a woman

requires a hysterectomy for a benign condition, then that procedure

should be done vaginally or laparoscopically. The statement continues

to advise that if a surgeon is not capable of doing that, then he or she

should refer that patient to a surgeon who is.

(Pitter 9)

Most interesting, Dr. Pitter shares, is that in the five or six years since

the introduction of the da Vinci® Surgical System into gynecologic

surgery, 20 percent of hysterectomies are now being done through a

robot-assisted laparoscopic procedure. “It’s really making a difference

in terms of being able to provide a minimally invasive alternative to

women who need this procedure for benign indications,” Dr. Pitter is

happy to report.

Dr. Pitter receives referrals from the tri-state area and also nationally and

internationally for each of the robot-assisted procedures he performs.

Endocrinologists, internists, urologists and even gynecologists who

do not perform laparoscopic surgeries, send their patients to Dr. Pitter

for surgical treatment that is minimally invasive. After surgical care

has been completed, those patients return to their own physicians.

As a pioneer of robot-assisted gynecologic surgery, Dr. Pitter teaches

other surgeons, nationally and internationally, who wish to adopt the

da Vinci® system for their procedures. He also serves as a consultant,

meeting with engineers to help fine-tune tools for gynecologic

robotic surgery that are already in development and those that are

being developed. Additionally, Dr. Pitter advises on the creation of

educational devices such as simulators for surgeons in training. For

gynecologic surgeons who have already adopted the da Vinci®

system, Dr. Pitter is one of the hosts who teach courses at increasing

levels that help even those who have done more than 100 robot-

assisted laparoscopic surgeries to further hone their skills.

There is no question that a laparoscopic approach, which offers

a much lower rate of associated complications, is superior to

open surgery whenever there is a choice. For women with benign

gynecologic conditions, Dr. Pitter has been instrumental in ensuring

that minimally invasive surgery becomes increasingly more available

as an option.

For more information or to make an appointment with Dr. Pitter, please

call (973) 926-4600.

p the robot is used to separate and free the uterus.

p As a pioneer of robot-assisted gynecologic surgery, Dr. pitter teaches surgeons nationally and internationally who wish to adopt the da Vinci® system. He has been instrumental in increasing the adoption of the da Vinci® system for the treatment of benign gynecologic conditions.

Page 11: NJ Physician Magazine Septemember 2011

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Page 12: NJ Physician Magazine Septemember 2011

10 New Jersey Physician

Health Law Update

OIG Identifies $6.8 Million in Overpayments to NJ and Surrounding States

HealtH lawUpdateProvided by Brach Eichler LLC, Counselors at Law

On August 17, 2011, the U.S. Department of

Health & Human Services Office of Inspec-

tor General (OIG) released an audit report

detailing Highmark Medicare Services over-

payments. According to the OIG, providers

were overpaid by approximately $6.8 mil-

lion from January 1, 2006 through June 30,

2009.

The OIG found that 68% of 1,507 selected

claims processed by Highmark, the Medi-

care Administrative Contractor for Pennsyl-

vania, Delaware, Maryland, New Jersey and

the District of Columbia metro area, were

incorrectly paid for outpatient services.

Moreover, the OIG reported that providers

failed to refund any of the overpayments by

the start of the OIG’s investigation.

Additional billing issues highlighted in the

report include the following:

• Incorrect units of service

• Packaged services billed separately

• Healthcare Common Procedure Coding

System (HCPCS) codes that did not re-

flect the procedures performed

• Unallowable services

• Unlabeled use of a drug/biological

• A lack of supporting documentation

• A combination of incorrect units of ser-

vice and incorrect HCPCS codes

• Incorrectly calculated payments

The OIG recommended that Highmark re-

cover the identified overpayments, imple-

ment system edits that identify line item

payments that exceed billed charges by a

prescribed amount, and utilize the results

of the audit report in its provider education

activities.

New Jersey Bill Provides for Facilities to Make Health Care Decisions for Patients Without Decision-Making CapacityOn June 13, 2011, a bill sponsored by As-

semblyman Herb Conaway, Jr. and Assem-

blywoman Valerie Vainieri Huttle reported

favorably out of the Assembly Health and

Senior Services Committee (A4098). The

impetus behind the bill is to facilitate the

making of health care decisions for patients

in a general or special hospital, nursing

home or assisted living facility (health care

facility) who have lost decision-making ca-

pacity, and to establish a demonstration

program relating to the transfer of certain

patients from inpatient care to post-acute

care.

Some of the major highlights of the bill in-

clude:

• A health care facility will be required to

establish policies and procedures to pro-

vide for the making of health care deci-

sions by a surrogate, to be designated by

the health care facility, for an adult pa-

tient who is determined to lack decision-

making capacity, who does not have a

patient’s representative and who has not

executed an advance directive

• The patient’s attending physician will

make an initial determination (subject to

a concurring determination by a health

or social service practitioner) that the

patient lacks decision-making capacity to

a reasonable degree of medical certainty,

including an assessment of the cause

Page 13: NJ Physician Magazine Septemember 2011

September 2011 11

and extent of the patient’s incapacity and

the likelihood that the patient will regain

decision-making capacity

• A health care facility will be authorized to

designate a surrogate to make health care

decisions for an adult patient who has

been determined to lack decision-making

capacity, and is to provide prompt notice

of that determination and designation to

the patient, if the health care facility has

any indication of the patient’s ability to

comprehend the information, and at least

one person on the “surrogate list,” which

will be set forth in the final law and which

will designate individuals, by order of

priority, to be named as surrogates when

necessary

• A surrogate who is designated pursuant to

the bill will, subject to the provisions to be

included in the final law, have authority to

make health care decisions on the adult

patient’s behalf

• A decision by a surrogate to withhold or

withdraw life-sustaining treatment from

the patient will be authorized if the at-

tending physician determines, with the

independent concurrence of another

physician and to a reasonable degree of

medical certainty and in accordance with

accepted medical standards, that certain

criteria to be set forth in the final law are

met

If passed in its present form, the new law

would establish a three-year transition au-

thorization panel demonstration program,

to be conducted at six program sites, two

each in the northern, central and southern

regions of the state, for the purpose of evalu-

ating an approach to making decisions relat-

ing to the transition of eligible patients from

inpatient care to post-acute care.

We will continue to monitor the progress of

this bill as it continues through the legisla-

tive process.

For additional information, contact: Lani

M. Dornfeld 973.403.3136 ldornfeld@

bracheichler.com or Kevin M. Lastorino

973.403.3129 [email protected]

Princeton Insurance knows New Jersey, with the longest continuous market

presence of any company offering medical professional liability coverage in the state.

Leadership: Over 16,000 New Jersey policyholders

Longevity: Serving New Jersey continuously since 1976

Expertise: More than 55,000 New Jersey medical malpracticeclaims handled

Strength: Over $1 billion in assets and $353 million in surplusas of December 31, 2010

Service: Calls handled personally, specialized legalrepresentation, knowledgeable independent agents,in-office visits by our skilled risk consultants

Knowledge: New Jersey-specific knowledge and decades of experience

Innovation: Three corporate options, specialty reports,practitioner profiles, office practice toolkits, optional data privacy coverage

Page 14: NJ Physician Magazine Septemember 2011

12 New Jersey Physician

Statehouse

NEW JERSEYSTaTEHOUSE

In response to the federal health reform

law, now known as the Affordable Care Act

(ACA), and separate state reform initiatives,

some members of at least 45 state legislatures

have proposed legislation to limit, alter or

oppose selected state or federal actions. In

general many of the opposing measures, in

2010 and 2011:

• Focus on not permitting, implementing or

enforcing mandates (federal or state) that

would require purchase of insurance by

individuals or by employers and impose

fines or penalties for those who fail to do so.

• Seek to keep in-state health insurance

optional, and instead allow people to

purchase any type of health services or

coverage they may choose.

• Contradict or challenge policy provisions

contained in the 2010 federal law.

The language varies from state to state

and includes statutes and constitutional

amendments, as well as binding and non-

binding state resolutions. For 2011, there are

several new approaches:

• Several states considered bills that would

prohibit state agencies or officials from

applying for federal grants or using state

resources to implement provisions of the

Affordable Care Act, unless authorized to

do so by adopted state legislation.

• 16 states considered measures to create

an “Interstate Freedom Compact,” joining

forces across state lines to coordinate

or enforce opposition; four states now

have enacted laws. For information, see

NCSL article: Some States Pursue Health

Compact (Updated edition 7/19/2011).

• Several states are considering bills that

propose the power of “nullification,”

seeking to label the federal law “null and

void” within the state boundaries.

Florida v. U.S. Dep’t of Health & Human

Services. On September 28 both the

plaintiffs and the Justice Department, in

the Florida-based multi-state challenge to

the Affordable Care Act (ACA), formally

petitioned the Supreme Court to take up

the case during its upcoming term (October

2011-June 2012).

“We believe the question is appropriate for

review by the Supreme Court,” the Justice

Department stated on Wednesday. “Time is

of the essence,” wrote Paul D. Clement, the

former United States solicitor general who

represents 26 states that are challenging

the law. On September 26, the Justice

Department said that it had decided not to

ask the full U.S. Court of Appeals for the 11th

Circuit in Atlanta to conduct another review

at the circuit court level, which could have

slowed the court process.

On August 12, the Court of Appeals for the

11th Circuit in Atlanta, in State of Florida v.

U.S. Dep’t of Health & Human Services, ruled

against the individual mandate provision in

the ACA, by 2-to-1. This case was initiated

by Florida A.G. Bill McCollum and eventually

joined by 26 states; their case argued that the

reform law should be struck down because

it relies on an unconstitutional expansion of

federal power.

Court Filings requesting Surpreme Court

review: United States’s petition for a writ of

certiorari | Florida et al. petition for a writ

of certiorari | NFIB petition for a writ of

certiorari 9/28/2011.

News analyses: “Supreme Court Is Asked to

Rule on Health Care” by New York Times,

9/29/2011

affordable Care act

appeals Court action with Leagal Details

Page 15: NJ Physician Magazine Septemember 2011

September 2011 13

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Virginia: On September 8, 2011, the U.S.

Court of Appeals for the Fourth Circuit in

Richmond, Virginia sided with the federal

health reform law on procedural grounds,

dismissing or “vacating” two separate earlier

District Court cases.

• In Commonwealth of Virginia v.

Kathleen Sebelius (#11-1057), the

Appeals Court judges’ opinion (33 pages)

ruled that Virginia did not have standing

to challenge the Affordable Care Act based

on their state statute (Virginia Chapter

106 of 2010) declaring opposition to an

“individual mandate.” The federal law

will require most Americans to obtain or

purchase health insurance by 2014 or face a

financial penalty. The unanimous opinion,

written by Judge Diana Gribbon Motz,

concluded that a state does not “acquire

some special stake in the relationship

between its citizens and the federal

government merely by memorializing its

litigation position in a statute.” (p. 28) She

continued, “If we were to adopt Virginia’s

standing theory, each state could become

a roving constitutional watchdog of sorts.”

In both cases, the decision was to “vacate the

judgment of the district court and remand to

that court, with instructions to dismiss the

case for lack of subject-matter jurisdiction.”

Virginia goes back to the U.S. District Court

for the Eastern District of Virginia; (Civil

Action No. 3:10-cv-188,) where Judge Henry

Hudson had issued a ruling on December

13, 2010, declaring the federal individual

mandate unconstitutional. Virginia Attorney

General Kenneth Cuccinelli announced on

September 8 that he would appeal to the U.S.

Supreme Court.

• In Liberty University v. Timothy

Geithner (#10-2347), the Appeals Court

judges’ opinion (140 pages) ruled 2-1

that the plaintiffs also lacked standing to

challenge the federal law, for a different

legal reason. Judge Motz wrote that the

Liberty suit could not seek to strike down

the individual mandate before it took effect

in 2014 because doing so would, in effect,

usurp the government’s right to collect a tax.

Earlier, another federal appeals court

disagreed when reviewing similar but

separate legal challenges, upholding the

Affordable Care Act.

• Ohio: On June 29, a three-judge panel of

the Court of Appeals for the Sixth Circuit in

Cincinnati, in Thomas More Law Center

v. Barack Obama (#10-2388), ruled 2-to-

1 in favor of the federal law’s requirement

that most Americans must obtain health

insurance, starting in 2014. Judge Jeffrey

Sutton delivered the opinion for the court;

the decision in part split three ways, with

no majority to completely uphold the

mandate under the Commerce Clause.

Page 16: NJ Physician Magazine Septemember 2011

14 New Jersey Physician

Medical Malpractice

Emerging Liability Insurance RisksWhile the healthcare provider landscape

changes, so too does the healthcare liability

insurance landscape. Physicians who are

selling their practices, or partnering or

working with larger systems are sometimes

encouraged to accept anew liability

insurance plan. Other physicians are being

approached by representatives touting

the latest concepts in professional liability

insurance. With new plans though, come

new issues, and sometimes, new lawsuits.

To avoid litigation tomorrow, physicians

should be asking five essential questions

today.

1) What Type of Coverage Will I Have?The two main types of professional liability

insurance coverage are occurrence

and claims-made. Occurrence coverage

provides “permanent” protection, as long

as coverage is in place when a

covered incident that

leads to a claim

occurs.

Claims-made coverage requires a policy

to be in effect both at the time an incident

that leads to a claim occurs, and at the

time the claim is made. Therefore, if there

is any interruption, lapse, or termination in

coverage, some claims may not be covered.

Some examples of prior cases, which

involve claims-made policies that have led

to denials of coverage, include:

- Expiration of extended reporting (“tail”)

coverage prior to a claim being made.

- Failure to align retroactive dates when

changing carriers.

If coverage is claims-made, physicians

should confirm, in writing, the terms of

the tail.

2) What are My Claim Reporting Obligations?Reporting obligations under an occurrence

policy are relatively flexible, as coverage is

triggered based upon the occurrence of an

event, not the reporting of an incident or

claim. Nevertheless, physicians should err

on the side of caution, and always consult

their personal attorneys or brokers - prior

to contacting a carrier - when an adverse

event occurs.

Reporting requirements under a claims-

made policy are generally stricter, especially

if a physician is changing carriers. Before

changing carriers, physicians should

report, and verify, coverage for any adverse

incidents. Even when physicians are

not changing carriers, it is important to

understand what circumstances give rise

to a “claim,” and when they should be

reported.

Page 17: NJ Physician Magazine Septemember 2011

September 2011 15

Notably, there are variations on claims-

made policies, such as “claims-made

and reported” policies, which preclude

coverage for any adverse incident that

could reasonably lead to a claim if it is not

reported before the policy renews. Many

problems can arise when physicians switch

policies without performing sufficient due

diligence. Examples include:

- When switching carriers, not notifying

both carriers of a potential claim.

- Notifying a carrier of a claim, but not

getting confirmation of coverage.

- Not reporting a claim to a carrier prior to

renewing a policy.

When an adverse incident occurs, physi-

cians should always contact their legal

advisor(s).

3) Is My Tail Guaranteed? By Whom? Even if an employer provides coverage to

an employee while he or she is working

on its behalf, this does not guarantee that

coverage will remain in place after the

employment relationship ends. In one

recent NJ decision, a court essentially held

that an employer is not responsible for an

employee’s tail coverage in the absence

of contractual language to that effect.

Therefore, the burden is on physician-

employees to ensure that their coverage

survives post-employment.

Significantly, some liability insurance

programs do not even allow individual

physicians to address tail coverage upon the

termination of an employment relationship,

and are beholden to the employer to ensure

that coverage remains in force.

For example, if a medical group has a

“blanket” claims-made policy that covers all

employed-healthcare providers, the group

alone is responsible for renewing the policy

every year. If the group fails to renew the

policy, the policy can cancel without the

physician having the ability to obtain his or

her own tail.

Examples of tail issues that can occur:

- A hospital system declares bankruptcy

and cannot meet its insurance payment

obligations, so coverage for itself and all

employees terminates.

- Other physicians within an insurance

pool experience significant losses,

leading to a collapse (insolvency) of the

program (see number 6).

- A group breaks up, or an individual

leaves a group, and is unable to

purchase a long-term tail.

Physicians should always have the terms of

liability coverage in writing.

4) Do I Have a Consent to Settle Clause?Asnew medical malpractice insurance

options continue to become available to

physicians, important provisions that have

traditionally been automatically included

in policies have quietly been removed for

the benefit of insurers, or insured-systems.

One such provision is a “consent-to-settle

clause,” which can be important to protect a

physician’s reputation. Some small carriers

and/ or self-insurance plans take this right

away from individual physicians, effectively

shifting control of the claims process to

either the carrier or employer. Two main

problems can occur:

- Hospitals settling a claim without a

physician’s consent, and unilaterally

apportioning a percentage to that

physician

- A carrier settling a claim without the

consent of one of its insureds, making

it reportable to the national practitioner

databank and the NJ division of

consumer affairs, and also potentially

making it more expensive to secure

coverage in the future.

Physicians should request a consent-

to-settle clause prior to signing on to a

policy when possible.

5) Is The Plan Financially Stable?Despite a history of many company failures,

medical malpractice has been a highly

profitable area of insurance over the past

few years. This revelation, along with the

relatively insignificant amount of capital

needed to start an alternative risk model

to insure physicians (e.g.captive or risk

retention group) has spawned numerous

professional liability programs. Some of

these programs have already failed.

The best way to track a program’s financial

strength is to inquire about its AM Best

(financial strength) rating. Since many new

programs do not have the financial ability

to qualify for an AM Best rating, physicians

should ask their accountants or other

advisors to review the annual financial

statements. Two common issues that occur

with financial hardship:

- Financial inability of a healthcare system

to purchase tail coverage for employed-

physicians.

- Failure of an insurance program, leaving

physicians personally liable to defend

against lawsuits.

Conclusion

The changing medical malpractice

insurance market has prompted new waves

of litigation over coverage, and much of

it involves physicians that have become

accustomed to certain protections, but

lost them because they signed on to plans

that they perhaps did not fully understand.

A little due diligence before making these

important decisions could save physicians

considerable resources down the road.

Brian S. Kern, Esq. is a co-founder

and principal with Argent Professional

Insurance Agency, LLC, the region’s

premiere professional liability insurance

agency.

Page 18: NJ Physician Magazine Septemember 2011

16 New Jersey Physician

Industry News

medical protective to Acquire

Princeton Insurance Princeton offices & policyholder services to

remain in New Jersey…

Princeton policyholders to benefit from

Berkshire Hathaway’s unmatched financial

strength

NEW YORK & PRINCETON, N.J. & FORT

WAYNE, Ind.--(BUSINESS WIRE) -- Medical

Liability Mutual Insurance Company (MLMIC)

and Medical Protective Company (MedPro), a

Berkshire Hathaway (NYSE:BRK) subsidiary,

today announced that they have entered into a

definitive agreement for the sale of Princeton

Insurance Company, one of the Northeast’s

premiere professional liability insurers for

healthcare providers, subject to regulatory

filings, review and approvals.

“MedPro’s acquisition of Princeton, if

approved, would ensure that there is

continuity of Princeton’s medical professional

liability coverage for its current policyholders

and enable Princeton to continue its mission

in the future”

The directors and shareholders of MLMIC,

Princeton and MedPro have approved

the agreement that provides for MedPro’s

purchase of 100% ownership of Princeton

from MLMIC in an all-cash transaction. The

acquisition, which is subject to customary

closing conditions and regulatory approvals,

is expected to close in the fourth quarter of

2011.

“MedPro’s acquisition of Princeton, if

approved, would ensure that there is

continuity of Princeton’s medical professional

liability coverage for its current policyholders

and enable Princeton to continue its mission

in the future,” said MLMIC’s President,

Robert A. Menotti, M.D. “At the same time,

this transaction would maximize the value

of Princeton for our MLMIC policyholders.

Further, MLMIC would benefit by being able

to focus entirely on its commitment to New

York State healthcare providers, offering the

highest quality professional liability insurance

to physicians, dentists, hospitals, and other

healthcare providers at the lowest possible cost

consistent with long term viability. We have

been pleased with the efficient and smooth

acquisition process we have experienced

with Berkshire’s MedPro and extend our best

wishes to Princeton employees for continued

success.”

Based in Princeton, New Jersey, Princeton

Insurance employs over 100 people and

serves over 13,000 healthcare providers; it

has annualized gross written premiums of

approximately $140 million and surplus at 2nd

quarter-end of approximately $400 million.

Princeton’s principal operations would remain

in Princeton, New Jersey where it was founded

in 1975, and twenty-eight year employee

Charles Lefevre would remain as President.

Lefevre commented, “We are grateful for the

support MLMIC and their leadership have

provided to Princeton over this past decade

in our mission to serve healthcare providers.

We look forward to the enhanced product

offerings, unmatched financial strength and to

leveraging more than a century of experience

that Berkshire’s MedPro would provide to

Princeton. This transaction represents a

positive step forward in assisting healthcare

providers meet the challenges they face in

a changing healthcare environment, and a

positive step for our dedicated agents and

employees as well.”

With the industry-leading financial strength

of Berkshire’s MedPro supporting Princeton

upon the closing of the transaction, Princeton

– currently not rated by leading insurance

rater A.M. Best – is expected to apply for

financial strength ratings and be positioned

to offer additional products and services to

healthcare providers throughout the region.

Tim Kenesey, MedPro’s President and CEO,

said: “This is a win for Princeton policyholders

and agents, who would continue to enjoy the

same terrific local service long-provided by

Princeton, but would soon have the financial

strength of MedPro’s industry-leading level,

and soon have service enhancements and

additional product offerings … it is a win

for MLMIC, who enjoyed a fast and efficient

‘transaction process’ … and it is a win for

MedPro as we strengthen our Northeast

business and – importantly – enhance our

capabilities in the growing hospital segment.”

Warren Buffett, Chairman of Berkshire

Hathaway, added: “We’ve been absolutely

delighted with our acquisition of MedPro

in 2005, and look forward to MedPro

completing additional ‘add-on’ transactions

with companies – like Princeton – who

seek the world’s most stable home for their

policyholders in a very unstable and changing

healthcare liability landscape.”

Sandler O’Neill + Partners, L.P. acted as

exclusive financial advisor to MLMIC.

Page 19: NJ Physician Magazine Septemember 2011

September 2011 17

Case I

An 88 year old white female living

in Israel developed 6 months of

daily fever and fatigue. She was

born in Poland and survived the

Nazi concentration camp. She

moved to Israel and had 4 healthy

children and 6 grandchildren one

of which was a house officer at St.

Michael’s Medical Center

The patient was a healthy

appearing, very bright woman. Her

exam was completely normal as

was her CBC, S rate, platelets, liver

test, urinalysis, blood and urine

cultures, and Brucella antibody

test. PPD negative, Total body CT

no nodes, no abnormality, CSF

negative. What is the diagnosis?

Case II

A 52 year old male electrician

complained of recurrent sinusitis

for years with increasing intensity

and pain. MRSA was cultured from

the nose but the pain continued

despite IV Vancomycin therapy.

The CT of sinuses was negative.

He was seen by many doctors

including an ENT specialist.

Nasoscope negative exam.

The white count was elevated at

15,000 with a normal differential

count. The sed rate was 88

elevated. All other lab tests were

negative including blood cultures,

cryptococcal antigen of serum

viral and bacterial nose cultures

and liver tests. IGE 800 elevated.

Allergic to grass and molds on

RAST test. Antihistimine and local

steroids were not affective. Low

dose steroids also not effective.

Desentization seems to aggravate

the sinus pain. He became

addicted to narcotic drugs. What

is the diagnosis?

Diagnosis

D I A G N O S I SFamed Infectious Disease Specialist Leon Smith, MD has suggested we start a contest. He will submit symptoms and the correct diagnosis will win a New Jersey Physician T-Shirt, as well as getting honorable mention in our column.

Please send responses to [email protected]

Rx

Page 20: NJ Physician Magazine Septemember 2011

18 New Jersey Physician

Food for Thought

We’d always been meaning to try Arturo’s,

having read and heard great reviews. The

problem was, every time we were in Maple-

wood, to catch a movie or perhaps to just

walk through the lovely town and see where

we ended up, there was always a long line

of people waiting for a table. Last week we

made it our business to head for Maplewood

at around 5:30 PM and hope to be seated

without too much of a wait. The plan worked

better than expected. We were ushered right

in.

The place is small with seating for about

40. It was already pretty full, mostly families

with young children enjoying a pizza night

out. Arturo’s is probably best known for its

pizza, although it has received raves from

prominent critics for its authentic Italian

dishes prepared with fresh, locally produced

ingredients and those imported from Italy. In

fact, there is a tasting menu on Tuesdays and

Saturdays when Chef and owner Dan Richer

showcases his considerable talent, having

traveled to Italy to learn from the masters.

This night for us was all about the pizza. We

wanted to sample Arturo’s famous crust

made with naturally leavened pizza dough

that has been fermented for 30 hours with a

wild yeast culture and baked in a wood-burn-

ing oven. We started with an “emiliana” salad

consisting of thin slices of Arturo’s home-

cured prosciutto di parma, seasonal greens,

balsamic vinaigtette and shaved parmagiano

reggiano. We mentioned to our server that

we wished to share this and to our delight,

the salad was divided in the kitchen and

brought out on two plates.

The prociutto was divine – possibly the best

I’ve had. The greens were baby arugula,

which I always enjoy and together with the

dressing and imported cheese it all worked

beautifully. While we ate our salad I looked

around at this cozy little place and observed

young families obviously enjoying their pizza

and/or pasta and each other. There were

also tables for two like ours with a bottle

of wine or some beer brought along to ac-

company the meal. As we waited for our piz-

zas to arrive, I did notice a line developing.

There weren’t young families at this point but

rather older groups of two or four waiting to

be seated.

Arturo’s - Osteria & PizzeriaMaplewood, New JerseyBy Iris Goldberg

p Dan richer, Chef/Owner of Arturo’s Osteria in maplewood.

Page 21: NJ Physician Magazine Septemember 2011

September 2011 19

Instead of one large pie we chose two individual pies to get a better

sampling. The first had to be the Margherita, Arturo’s most famous

pizza, with hand-made mozzarella, tomato sauce, sea salt from Italy,

fresh basil and extra virgin olive oil from Southern Italy. First, let me

describe the crust. The raves are not exaggerated. It was rustic- crisp

on the outside yet light and delicate inside. The mozzarella was su-

perb and the sauce brought me back to my young days in Brooklyn.

Our second choice was the Tartufi with home-made sausage, mush-

rooms and white truffle oil which is imported from Alba, Italy. This

was also wonderful. The meat was delicious and the white truffle oil

was a perfect complement. We were blown away by Arturo’s pizza!

In fact, I am ranking it above the pizza at Star Tavern, which was, until

now, my favorite.

Next time, we will make reservations for the tasting menu (reserva-

tions are not accepted at other times), as we are eager to try Chef

Richer’s specialties. I will definitely share that experience with our

readers. Until then, I do urge you to give Arturo’s a try whether for the

pizza or the other options. If there’s a line, brave it. I don’t think you

will be disappointed.

Arturo’s is located at 180 Maplewood Avenue, Maplewood, NJ 07040.

(973) 378-5800

p pizza margherita, the classic, made with fresh mozzarella.

p A piedmontese-style fresh pasta with meat ragu, shaved parmigiano-reggiano.

p panna Cotta for dessert.

p Fresh pasta being tossed in the hearth.

Page 22: NJ Physician Magazine Septemember 2011

20 New Jersey Physician

Hospital Rounds

New Chief Medical Officer Named at The Cancer Institute of New Jersey Montgomery Township Resident Tapped for Leadership Post

A Belle Mead (Somerset

County) resident has

been named the new

chief medical officer

at The Cancer Institute

of New Jersey (CINJ).

Deborah L. Toppmeyer, MD, an associate

professor of medicine at UMDNJ-Robert

Wood Johnson Medical School, was

recently appointed by CINJ Director

Robert S. DiPaola, MD. CINJ is a Center

of Excellence of UMDNJ-Robert Wood

Johnson Medical School.

Dr. Toppmeyer joined CINJ in 1995 from

the Dana Farber Cancer Institute at Harvard

Medical School. She is an expert in breast

cancer, breast cancer genetics and the

design and implementation of clinical

trials that offer promising new therapies

targeted to specific types of breast cancer.

As chief medical officer, she will be

responsible for compliance with all clinical

medical policies, regulations and clinical

performance standards of the state, the

federal government, and accrediting bodies.

She will have oversight and responsibility

for all of CINJ’s clinical objectives and serve

as CINJ’s ultimate authority on medical

issues.

Through her role as director both of CINJ’s

Stacy Goldstein Breast Cancer Center and

of the LIFE (LPGA pros In the Fight to

Eradicate breast cancer) Center, Toppmeyer

helps patients navigate through treatment

options while encouraging enrollment in

clinical trials. She is also the chief of solid

tumor oncology at CINJ.

“Over the past 16 years, Dr. Toppmeyer has

played an integral role in the advancement

and success of CINJ. As a renowned

researcher and clinician, Dr. Toppmeyer

has drawn upon and shared that wealth of

experience in order to successfully meet

the needs of patients while growing CINJ

clinic operations and clinical trial accrual.

I have every confidence that in her new

role, she will help move CINJ forward in an

even greater capacity,” noted Dr. DiPaola,

a professor of medicine at UMDNJ-Robert

Wood Johnson Medical School.

Toppmeyer is the author or co-author of

more than 40 publications and serves on

the editorial board of the journal Clinical

Cancer Research. She also serves as a

core member for the Breast Committee

of the Eastern Cooperative Oncology

Group, which is one of the nation’s largest

clinical cancer research organizations that

conducts clinical trials in all types of adult

cancers.

About The Cancer Institute of New JerseyThe Cancer Institute of New Jersey (www.

cinj.org) is the state’s first and only National

Cancer Institute-designated Comprehensive

Cancer Center dedicated to improving the

detection, treatment and care of patients

with cancer, and serving as an education

resource for cancer prevention. CINJ’s

physician-scientists engage in translational

research, transforming their laboratory

discoveries into clinical practice, quite

literally bringing research to life. To make a

tax-deductible gift to support CINJ, call 732-

235-8614 or visit www.cinjfoundation.org.

CINJ is a Center of Excellence of UMDNJ-

Robert Wood Johnson Medical School.

Follow us on Facebook at www.facebook.

com/TheCINJ.

The CINJ Network is comprised of hospitals

throughout the state and provides the

highest quality cancer care and rapid

dissemination of important discoveries

into the community. Flagship Hospital:

Robert Wood Johnson University Hospital.

System Partner: Meridian Health (Jersey

Shore University Medical Center, Ocean

Medical Center, Riverview Medical Center,

Southern Ocean Medical Center, and

Bayshore Community Hospital). Major

Clinical Research Affiliate Hospitals: Carol

G. Simon Cancer Center at Morristown

Medical Center, Carol G. Simon Cancer

Center at Overlook Medical Center, and

Cooper University Hospital. Affiliate

Hospitals: CentraState Healthcare System,

JFK Medical Center, Mountainside Hospital,

Robert Wood Johnson University Hospital

Hamilton (CINJ Hamilton), Somerset

Medical Center, The University Hospital/

UMDNJ-New Jersey Medical School*, and

University Medical Center at Princeton.

*Academic Affiliate

Page 23: NJ Physician Magazine Septemember 2011

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Page 24: NJ Physician Magazine Septemember 2011